Kit cars are automobiles in which people buy a set of parts and then need to assemble the car themselves. These are also referred to as “replica” cars, referring to the fact that the car has been produced by a car manufacturer and the vehicle is being replicated. If you are purchasing a kit car, you then need to purchase kit car insurance.
When you order your kit car insurance, you will need to make sure you get insurance on every piece that is being shipped. “Goods in transit” insurance will give you protection on the goods until you receive them from the shipper. This will cover you so you can get the replacement value if any pieces are lost in transit upon delivery, as well as if parts are stolen while you are in the midst of putting your car together.
The insurance for your kit cars should not be confused with a regular auto insurance policy. First of all, there is usually a stipulation by the insurance company that the kit car can only be driven 2500 to 5000 miles per year. Check on other policy features as well, such as coverage for spare parts. Like regular car insurance, your kit car will be covered for theft, fire, accidents, and all other insurance needs that you would find in a regular auto insurance policy. Do expect to pay a higher premium than your normal car insurance, cheap kit car insurance would be nice but is unlikely to be readily available.
To get this insurance, you must first find a company that deals with kit cars insurance, as not all auto insurance companies deal with these kinds of policies. Get quotes from different insurance companies so you can find the best rate. Most of the companies offering this insurance will give you a kit car insurance online quote as a starting point. After finding one, you need to discuss with your agent all the specifications of your car so they can figure out what your policy will include, the coverage and the costs. You never know until you actually get done building the kit car exactly what is going to happen, as things could change during the building process. Therefore, you need to keep your agent updated on any modifications that may occur that were not previously discussed. It is also possible that your kit car could appreciate in value, meaning you may need to increase your insurance. This is important to be aware of because you don’t want to be driving under insured, especially on something you have worked so hard on. A good practice is to check on insurance companies and quotes yearly. As your coverage changes you may end up with a better deal though another provider. A key here is your deductible. Believe it or not,many of these insurance companies can offer you a zero deductible option without it costing much more than if you have a deductible. They can also provide coverage if you plan to race your kit car, so that is something to keep in mind as well. Also, being a member of a kit car club could entitle you to a discount on your premium, so that is something you may want to check into.
Another important part of the insurance process is to get your kit car appraised. It is difficult to get an accurate kit car insurance quote without one. Your insurance company can likely provide you with a list of appraisers, or you can search one out yourself. This should be done before you finalize any insurance policy, as this will have a lot to do with how much insurance you are going to need.
Having a kit car can be a fulfilling and fun thing, especially when you complete it and are able to drive it. Just keep in mind, kit car insurance is needed to protect your proudly built investment.